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Levi Strauss surpasses estimates and raises outlook

Image Source: Levi Strauss

(Reuters)-Levi Strauss & Company boosted half-year earnings growth forecast on Thursday after denim maker surpassed pandemic-led e-commerce quarterly earnings estimates, successfully leveraging COVID-19 vaccine deployment I’m back. Boost.

The company’s stock rose 5% in extended trading as it also raised its quarterly dividend from 4 cents to 6 cents per share.

Many apparel retailers, including Nike Inc and Kohl’s Corp, are similarly optimistic about returning store traffic to normal levels, despite the surge in online sales during the health crisis of recent months. Shows a typical view.

Levi’s Chief Executive Officer Chipberg said:

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As of Thursday, more than 40% of European stores were closed, and the rest were shortened due to blockade restrictions, according to Levi.

Jeans makers said they expect sales in the first half of 2021 to increase by 24% to 25% from the previous 18% to 20% range.

Levi also said he expects adjusted earnings per share for this period to be between 41 and 42 cents. According to Refinitiv’s IBES data, analysts expect earnings per share in the first and second quarters to average 30 cents.

First-quarter net sales, which ended on February 28, fell about 13% to $ 1.31 billion, surpassing analysts’ expectations of $ 1.25 billion.

Digital revenue, including sales from Levi’s wholesale partners, increased by approximately 41%, more than offsetting the pandemic’s decline in physical store visits.

On an adjusted basis, Levi earned 34 cents per share, ahead of analysts’ estimates of 25 cents.

Reported by Praveen Paramasivam in Bangalore. Edited by Ramakrishnan M.

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Source: Reuters

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